Gwyn owns a furniture store. she notices prices at other furniture stores have increased dramatically over the past two years. she decides she needs to expand her output because demand must be growing. however, in order to do so, she needs to find a loan. what problems could inflation cause for gwyn?

Question

Luna Orr

Business

16 March, 22:46

Gwyn owns a furniture store. she notices prices at other furniture stores have increased dramatically over the past two years. she decides she needs to expand her output because demand must be growing. however, in order to do so, she needs to find a loan. what problems could inflation cause for gwyn?

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Courtney Humphrey · Answer 1

The problems that inflation cause for Gywn are the following;

- She may likely to spend money in updating the display of the prices that is on the store

- In providing a loan, the lenders may be wary as it is difficult to predict the future price levels

- She may likely misinterpret the rising prices that are associated with inflation in regards for a higher demand